The Surprising Link Between AI, Jobs and 3 BIG Dividends (up to 8.5%)

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Still wondering if AI will replace human workers? Well, you can stop. Because it’s already happening—and boosting corporate profits as it does.

That’s tough news for workers, of course. But there’s a silver lining for those of us investing for dividends. Because the “growth-without-hiring” trend AI has touched off is setting up one of the strongest income opportunities I’ve seen in years. (I’ll name three AI plays yielding up to 8.5% below.)

Wait, AI is setting the stage for big dividends?

I know. AI is known for a lot of things—many of which have been, er, less than helpful, such as infringing on copyrights and forcing McNuggets on pleading McDonald’s (MCD) drive-thru customers.… Read more

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Can you and I beat the legendary returns of Warren Buffett? Absolutely. What’s more, we can do it while “translating” a slice of our gains into a big income stream (with special dividends on the table, too).

I’ll show you how in a moment.

First, we need to talk about how the 94-year-old Oracle of Omaha, who is now stepping back from the position of president and CEO of Berkshire Hathaway (BRK.A), has changed the course of investing over the years.

Every year, as you likely know, Buffett releases a simple letter to investors showing what’s happened with Berkshire’s portfolio.… Read more

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Here’s some good news in these uncertain times: Most investors who’ve invested for the long haul are well-equipped to deal with this selloff. That’s because, over the last five years, stocks have been on an absolute tear.

In that period, the S&P 500 has delivered an average annual total return of 19.1%, as of this writing. That’s more than double the average of about 8% in the last century.

Looking at Various Time Frames Can Skew Our View

Think back five years for a moment. Back then, the stock market’s prospects looked bleak, indeed, as we were at the beginning of the pandemic-driven selloff.… Read more

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I recently got some reader feedback that made me realize something: When it comes to our favorite income investments—8%+ yielding closed-end funds (CEFs)—there are still a lot of misconceptions out there.

It’s key that we put those right, because they’re causing some investors to miss out on CEFs, and the big (and often monthly) dividends they provide. And I know I don’t have to tell you that in turbulent times like these, high payouts like those are a lifesaver.

This reader wrote in response to a recent piece I wrote about how CEFs can be better than ETFs, pointing out two things:

  1. The three CEFs I mentioned in the piece have higher expense ratios than passive funds.

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If you’re like most income investors, you’re on the hunt for stocks and funds that can stand up to a storm these days.

So that’s what I’m going to give you below—in the form of three “all-weather” closed-end funds (CEFs) kicking out an outsized 6.8% average yield.

They’ve stood firm through every headwind imaginable—wars, pandemics, inflation, you name it—and have done nothing but profit over the long haul. Through all that, this trio has kicked out annualized total returns (with dividends reinvested) of 15%+ each.

“Shock-Proofing” Your Portfolio, Crushing ETFs

These funds’ stellar returns come from both the sector they focus on—tech—and smart management that’s kept all three going strong.… Read more

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This week’s AI panic has opened up a rare bargain window in big tech names that were disposed of with the DeepSeek bathwater.

Nosebleed Nvidia (NVDA)—which we warned about here and here—is a “stay away.” But there are tech dividends worth exploring, with some paying us up to 13% a year.

Investors have been herded into the same AI and technology names that have been at the forefront for years, and—shockingly—those shares have largely been priced for perfection.

Chinese AI upstart DeepSeek has shown that deep pockets are not needed to build smart AI models. This should have come as no surprise, as China is home to many smart technologists.… Read more

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If you have a wealth manager working for you, I have one simple piece of advice: Seriously consider moving on from them (or managing your investments yourself) if they recommend following the “60/40” rule.

It simply says that most people should invest 60% of their assets in stocks and 40% in government bonds for retirement.

In a moment, we’ll talk about one fund we’d have completely missed out on by following 60/40 ourselves—or by signing on with a wealth manager who does so. (And not to worry, this one is still available for us to tap into for a solid 5.5% dividend, with upside.)… Read more

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Closed-end funds (CEFs), with an average yield of around 8%, are terrific for just about any investor—especially those looking to their portfolios to help pay the bills.

Heck, even if you’re not leaning on your CEFs for income, those big payouts are gold—you just reinvest them to boost your portfolio’s value and book an even bigger income stream going forward.

But of course, not all CEFs are great investments, with some best avoided unless they trade at big discounts to net asset value, or NAV, the key indicator of value for these funds. And sometimes even a great fund isn’t the best one to buy, despite a big yield and an impressive record.… Read more

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Hedge funds have a big problem: They can’t beat the market anymore.

If you read the press, you’ll see a lot of concern over this. If hedge funds aren’t cutting staff, they’re struggling to find talent to try to boost their returns. Moreover, the industry mostly keeps shuffling people within its ranks, undercutting the stability needed to make outperformance last.

So it’s kind of strange that hedge funds are managing more money than ever. The industry was managing $1 trillion in the mid-2000s, a milestone at the time. But now hedge funds are managing more than $4 trillion globally. And they’re still growing.… Read more

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If you’re like me, you read (or watch) a lot of personal-finance gurus. And nearly all of them make one critical error when giving advice to folks hoping to save for retirement (or stay retired, if they’re already there).

They put a lot of emphasis on cutting costs—we hear quite a bit about how we should limit small things like your streaming services, for example! Of course, most retirees (save for the very wealthy ones) will tell you that keeping costs reasonable is important.

But what I don’t hear enough from these “gurus” is how to find the high-quality income investments we need to get into retirement faster—and stay there once we arrive.… Read more

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